Charles & Colvard sales fell 16 percent in the fourth quarter as the Moissanite gemstone maker saw declines in both its U.S. and international markets.
Net sales for the quarter were $7.2 million. Sales in the U.S. fell 11 percent to $5.6 million, while international sales decreased 30 percent to $1.6 million.
The Morrisville-based company reported a net loss of $2.8 million, or 14 cents per share, in the quarter, compared with net income of $100,000, or 1 cent per share, during the same period a year ago.
“2014 was a transitional year for our business in many respects,” CEO Randy McCullough said in a statement. “While we were challenged by difficult economic conditions in some of our international markets, we had strong growth in our U.S. direct-to-consumer businesses.”
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Charles & Colvard sells its gemstones directly to consumers through an e-commerce website, Moissanite.com, as well is through Lulu Avenue, its home party business. E-commerce sales increased 24 percent in the fourth quarter, while Lulu Avenue sales increased 135 percent.
The bulk of Charles & Colvard sales still come from its wholesale business, which accounted for 74 percent of sales in the fourth quarter, compared with 85 percent during the same period in 2013.
For the year, Charles & Colvard reported a net loss of $13.1 million, or 65 cents per share, compared with a net loss of $1.3 million, or 6 cents per share, in 2013.
Charles & Colvard shares closed Friday at $1.33, down 10 cents. The stock is down 65 percent over the past year.